Seller Finance wrap around

[Adriana Rego]

Don’t know much on seller financing or how it’s reflected in the closing so any info even basic would be appreciated.

I have a deal where it would be seller finance I’d put 25% down - on $275K with balance 30 year amortization 5 year ballon.

Here’s what worries me they have a mortgage already on the property and plan a wrap around where they pay their debt and keep the difference.

My worry is - what if I pay them and they don’t pay the original mortgage? It’ll of course affect their credit but more importantly there is a lien on the house right?

Any and all info appreciated